Thai oil stocks set to benefit on Tuesday as crude price rises above $110
The Stock Exchange of Thailand (SET) Index is expected to fluctuate between 1,665 and 1,685 points on Tuesday after the price of crude oil rose above US$110 per barrel in response to news of European Union sanctions against Russia, Krungsri Securities said.
It also predicted the index would be under pressure due to uncertainty over rising US inflation and Russia-Ukraine peace talks.
"The US Federal Reserve will have to raise the interest rate more than 0.25 per cent to deal with rising inflation," Krungsri Securities said.
It also advised investors to follow Thursday’s meeting between the US, EU, the North Atlantic Treaty Organisation (Nato) and Group of 7 (G7) on sanctions against Russia.
It recommends the purchase of the following as an investment strategy:
• PTTEP, TOP, IVL, SPRC and BCP would benefit from the rising price of crude oil and gross refining margin.
• KBANK, BBL, TTB, and KTB would benefit from news of the US interest rate hike and Thailand's economic recovery.
• AOT, AAV, MINT, CENTEL, ERW, BH and BDMS would benefit from Covid-19 restrictions easing.
The SET Index closed at 1,673.87 on Monday, down 4.64 points or 0.28 per cent. Transactions totalled Bt73.65 billion with an index high of 1,685.78 and a low of 1,671.08.
